LLP is a legally recognized corporate entity, which integrates the features of both the Company and the traditional partnership firms. LLP is especially suitable for small to medium-sized business enterprises and professionals particularly.
Having protection as it is registered; one partner will not be liable for any misconduct or negligence of another partner.
At ebizfiling, we will make the process of conversion of your Company into Limited Liability Partnership smooth and easy.
Whether it is necessary for all partners or members to become partner of LLP post conversion?
At the time of conversion, all the partners/members shall become the partnes of the LLP and thereafter new partners can be admitted and old can cease as per the LLP Agreement.
Whether other business entities like firm or company would be able to convert themselves into LLP?
Yes. The LLP Act 2008 contains enabling provisions pursuant to which a firm (set up under Indian Partnership Act, 1932) and private company or unlisted public company (incorporated under Companies Act) would be able to convert themselves into LLPs. Provisions of section 55 to 57 and Schedule II to Schedule IV to the Act provide procedure in this regard.
Whether do we need to execute any instrument for transferring the assets & liabilities on conversion of company into LLP?
On conversion of the Company/partnership into LLP, all tangible (movable or immovable) and intangible property vested in the company, all assets, interests, rights, privileges, liabilities, obligations relating to the company/firm and the whole of the undertaking of the company shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed. The transfer of assets and liabilities will be made automatically on approval of conversion application and therefore there is no requirement of executing any deed.
What are the basic conditions for conversion of company into LLP
- All the members of the Company shall become the partners of the LLP on conversion.
- No security interest in the assets of the company is subsisting or in force on the date of conversion i.e the assets are free of any encumbrance.
- Up to date Income-tax return has been filed under the Income-tax Act, 1961.
- Any clearance, approval or permission for conversion of the company into limited liability partnership if required from anybody/ authority. etc has been obtained.
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